TOPIC: Do you believe this? Video streaming to take over

Do you believe this? Video streaming to take over
08 Jun 2014 17:13 #41042

Video streaming to take over film industry
by Seth Fitzgerald on June 5, 2014 at 4:38 pm

Video streaming to take over film industryIn just three years, Netflix and other video streaming services will become more profitable than the entire US movie box office that accounts for revenue generated by new movie releases. A report from PricewaterhouseCoopers (PwC) says that by 2017, Netflix, Hulu, and others will be more profitable and will also control 43 percent of the film industry. That market share, combined with the money to be made from streaming video, will put pressure on the industry to release movies outside of theaters sooner, says PwC.

The money being generated by online and TV-based streaming services will grow by nearly $10 billion over the next four years. In 2013, those services pulled in $7.34 billion but that figure will reach $11.47 billion in 2016 and $17.03 billion in 2018. Even before 2018, the video streaming industry will overtake the box office by more than $1 billion.

PwC is predicting that Netflix, Hulu, and other subscription services will dominate that growth and contribute the most to changes in the film industry. TV-based streaming on the other hand will not matter as much even though it is being utilized by some people.

Even though the film industry will have to adapt, it can expect to earn more from the box office in the future than it is now. As a result of increased movie ticket prices and other factors, the box office’s revenue will grow–just at a slower rate than streaming.

Last Edit: 08 Jun 2014 17:14 by SamCat. Reason: had other internet stuff in it

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Do you believe this? Video streaming to take over
08 Jun 2014 18:09 #41044

Do you believe this? Video streaming to take over
10 Jun 2014 11:11 #41056

People are going to the movies less than before. 2013 attendance rate is 22.5% less than the high rate of 5.45 in 2002. The last 5 years have been the worse attended in the last 19 years.

Theater locations are down 27% since the high in 1996. This was based on NATO's 2012 number. FWIW, the number of screens is at a all time high. You really want to operate that one or two screen theater?

BUT box office revenues are at a all-time high.

Generally, most investors are not too terribly excited about industries with fewer customers year after year.

Plus this is not a cheap business to get into. (If you want to be a serious operator.)

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Do you believe this? Video streaming to take over
10 Jun 2014 12:01 #41057

Attendance has been steady for years and still higher than the early 90s.
For 30 years I've heard this line the movie business is coming to an end
and it never happens like every business it has cycles .

The end of the movie business :
TV
Color TV
VHS
DVD
Laser Discs
Blu Ray
Direct tv
Computers
Tablets
And so it goes !!!!

Do you believe this? Video streaming to take over
10 Jun 2014 14:36 #41058

To be clear, the article does not say the end of movie theaters in near.

"Even though the film industry will have to adapt, it can expect to earn more from the box office in the future than it is now. As a result of increased movie ticket prices and other factors, the box office’s revenue will grow–just at a slower rate than streaming."